Living on a Budget, Saving Money/parents helping adult disabled son
Hello, I am 38 years old.male, I am disabled and get S.S. disability payments.$739 A MONTH, OF WHICH, $104 GOES TO PAY FOR
MEDICARE. I live in New York in nassau county. I live at home. Both parents are still alive, IN THEIR 70'S and they own
the house How can my parents and I plan for my future financial concerns. Assuming I stay in the house after they pass.
How do I pay for ALL ALL ALL expenses.-- Taxes, Insurances, utilities etc.. and spending money. What steps can my parents
and I take to start investing now for my retirement or more likely, for when my parents are gone. There is still a good
possibilty of me working in the future. but of course that's depending on various medical conditions. Thank you for any
Thank you so much for choosing me to assist you on your financial journey. If I understand you correctly you are concern with maintaining your parent’s home after they pass away on your limited income. You are right to think the expenses of being a homeowner are more expensive than people may think. You have taken the first step by analyzing this situation while your parents are alive.
My first recommendation is for you to sit with your parents and list all the expenses with the dollar amount. Some expenses are paid annually but you can divide by 12 and come up with the monthly amount. I would also factor in “wear and tear” expenses. This is money spent in the last two years on random expenses, such as- appliances, plumbing, roofing, pest control etc… Add all the amounts up to see if it is more than 50%of your monthly income. If not, great, you can remain in the home. If so, you will have to think of a Plan B. If your parents have not done so, they can have a Will prepared in which you inherit the house. I am assuming the house is paid off and there is no mortgage.
My second recommendation is to look at all possible inheritance income. Do your parents have a life insurance policy, retirement funds, or money in the bank in which you are the beneficiary? This additional income will allow you to remain in the home until it runs out. If there is no life insurance, retirement and the expenses are more than 50% of your income then go to Plan B. Plan B will be for you to increase your income through work (to the best of your ability), and to see what housing program you qualify for through the state for disable persons. You will be able to sell the house and not have the financial pressure of maintaining a home.
It sounds like you appreciate your parent’s stability and want them to know that you have a plan to take care of yourself once they are no longer with you. Thank you for being proactive, I hope this helps.